Question 1

ISO 9000 was developed by the International Organization for Standardization in Geneva,Switzerland.

Accepted Answer

A) True 
 B)False

Question 2

Michael Hammer and James Champy are noted for their advocacy of reengineering.

Accepted Answer

A) True 
 B)False

Question 3

The owner of a motorcycle assembly company hires a consulting firm to implement a process that focuses on specifically eliminating waste in every facet of operations.What will the consulting firm implement?

Accepted Answer

A)  JIT 
B)  lean manufacturing 
C)  synchronous management 
D)  reengineering

Question 4

Louise Garcia is attempting to use the ABC inventory method for her general store.What should she include in category A?

Accepted Answer

A)  high-value items such as hydraulic pumps 
B)  fragile items such as light bulbs 
C)  inexpensive items such as paperclips 
D)  intangible items such as goodwill

Question 5

A small firm's supplier can produce a component part with greater efficiency and volume.What should the firm do?

Accepted Answer

A)  make the component part as needed 
B)  make a large quantity of the component part and keep it in stock 
C)  seek other suppliers 
D)  buy the component part from that supplier

Question 6

The ultimate key factor to consider in selecting a supplier is the supplier's location.

Accepted Answer

A) True 
 B)False

Question 7

Job shops in manufacturing typically have long production runs of unique items.

Accepted Answer

A) True 
 B)False

Question 8

The decision to make or buy components is normally easy to reverse and should therefore be reviewed at least annually.

Accepted Answer

A) True 
 B)False

Question 9

What is an advantage of making,rather than buying,component parts?

Accepted Answer

A)  It uses otherwise idle capacity. 
B)  It simplifies the need for management expertise. 
C)  It reduces the risk of technological change and equipment obsolescence. 
D)  It permits concentration on the firm's specialty-its finished products.

Question 10

Reengineering consists of work analysis through time and motion study.

Accepted Answer

A) True 
 B)False

Question 11

Reengineering involves a radical change of business processes.

Accepted Answer

A) True 
 B)False

Question 12

Good relationships with suppliers are important in any business,but their importance increases as business size increases.

Accepted Answer

A) True 
 B)False

Question 13

The ABC method of inventory analysis classifies inventory items into categories according to their value.

Accepted Answer

A) True 
 B)False

Question 14

Acceptance sampling is the determination of product acceptability on the basis of a variable such as weight or length.

Accepted Answer

A) True 
 B)False

Question 15

A small manufacturer is choosing a supplier for component parts.Unless the manufacturer's circumstances are unusual,what areas should get primary consideration?

Accepted Answer

A)  location and quality 
B)  credit terms and location 
C)  price and quality 
D)  management advice and price

Question 16

Amritpal is negotiating the cost of pink roses with her floral supplier.The demand for pink roses has increased and Amritpal wants a better price.What activity is Amritpal fulfilling in her business?

Accepted Answer

A)  finance 
B)  administration 
C)  sales 
D)  operations

Question 17

A small electrical wholesaler is attempting to reduce inventory levels and provide for rapid delivery of purchased items.To which supplier area should the wholesaler give special attention?

Accepted Answer

A)  product quality 
B)  location 
C)  credit terms 
D)  price

Question 18

In order to achieve quality in every area,commitment is required by everyone in the organization,from the top leadership to the assembly-line worker.

Accepted Answer

A) True 
 B)False

Question 19

Why must inventory be controlled?

Accepted Answer

A)  to maximize the volume of overstock goods for display and delivery 
B)  to protect inventory against theft or deterioration 
C)  to reduce bookkeeping and purchase follow-up costs 
D)  to raise the level of customer service

Question 20

What is a type of inventory carrying cost?

Accepted Answer

A)  cost of transporting inventory from suppliers 
B)  cost of preparing inventory purchase orders 
C)  interest cost related to inventory 
D)  cost related to stockouts of inventory

Exam 12: Operations Management and Control Systems

ISO 9000 was developed by the International Organization for Standardization in Geneva,Switzerland.

Michael Hammer and James Champy are noted for their advocacy of reengineering.

The owner of a motorcycle assembly company hires a consulting firm to implement a process that focuses on specifically eliminating waste in every facet of operations.What will the consulting firm implement?

Louise Garcia is attempting to use the ABC inventory method for her general store.What should she include in category A?

A small firm's supplier can produce a component part with greater efficiency and volume.What should the firm do?

The ultimate key factor to consider in selecting a supplier is the supplier's location.

Job shops in manufacturing typically have long production runs of unique items.

The decision to make or buy components is normally easy to reverse and should therefore be reviewed at least annually.

What is an advantage of making,rather than buying,component parts?

Reengineering consists of work analysis through time and motion study.

Reengineering involves a radical change of business processes.

Good relationships with suppliers are important in any business,but their importance increases as business size increases.

The ABC method of inventory analysis classifies inventory items into categories according to their value.

Acceptance sampling is the determination of product acceptability on the basis of a variable such as weight or length.

A small manufacturer is choosing a supplier for component parts.Unless the manufacturer's circumstances are unusual,what areas should get primary consideration?

Amritpal is negotiating the cost of pink roses with her floral supplier.The demand for pink roses has increased and Amritpal wants a better price.What activity is Amritpal fulfilling in her business?

A small electrical wholesaler is attempting to reduce inventory levels and provide for rapid delivery of purchased items.To which supplier area should the wholesaler give special attention?

In order to achieve quality in every area,commitment is required by everyone in the organization,from the top leadership to the assembly-line worker.

Why must inventory be controlled?

What is a type of inventory carrying cost?